Tax season is always hectic for both taxpayers as well as accountants. As a small business owner, you need to be all the more careful about filing your taxes correctly and in time to avoid risking an audit by the Canada Revenue Agency (CRA). Of course, you might be taking the help of a professional accountant as the countdown to tax season begins, but is it enough?
Why Self-Accounting Can Be Risky
You might have overlooked some details if you have been handling your business accounting. While these may seem like minor slips or miscalculations, they could invite penalties when you file your taxes. Resolving tax penalties is expensive, time-consuming, and stressful.
A lack of thorough accounting knowledge could also cost you good money-saving opportunities while implementing a transaction. Delegating such work to someone not proficient with accounting could lead to more significant blunders, even frauds at times.
An expert well-versed with the dynamic tax rules can help you avail yourself of the tax benefits and avoid frauds and missouts.
Why Hiring an Accountant Is Your Best Bet
Last-minute calculations, deductions and gathering of necessary documentation can lead to erroneous tax filing procedures. Even a slight overlook or ignorance of some taxation rules is not excused by the CRA and can cost you precious time and money. A better option would be to have an accountant on board throughout the year to guide you through various business decisions, from hiring employees to withdrawing funds from business, selling assets, incorporating your business, retirement, deferring expenses and tax benefits, and more.
Every decision has an accounting implication, and the accountant can guide you on the best possible approach to execute the transaction tax-efficiently.
Accounting and Tax Expertise
As a small business, you could register your business as a corporation, a partnership, or a sole proprietorship. Each of these categories has its pros and cons. If you register your business under the wrong category, you could lose several tax benefits and be highly tax-inefficient. A professional accountant is well-versed in the rules and laws of the Canada Revenue Agency (CRA) and the nitty-gritty of each category. They can guide you on what’s best and most efficient for your business. Whether incorporating the business is beneficial or keeping it a sole proprietor.
Moreover, they know about tax-deductible expenses and can help you plan business expenses. If you consult your accountants before a big purchase or for a recurring purchase, they can guide you on the documentation and whether to bill it under the company or personal name. This way, you can never miss an opportunity to save tax.
Experience in Setting Up Accounting Systems
Apart from helping you avoid unnecessary run-ins with the CRA, a professional accountant can chalk out a plan for your business to follow all year round to avoid the last-minute rush before tax filing. An accountant’s experience in organizing your financial records, identifying optimistic investment avenues and managing cash flows better can help set up a proper accounting system for your business. That way, you won’t have to worry about hunting for documents or relevant information during tax filing.
Knowledge of Technology and Techniques
A good accountant will have access to various platforms that can make accounting tasks more manageable. They can recommend appropriate accounting software and budgeting or bookkeeping tools. They can also sort out the insurance requirements of your business. Moreover, they can also enlist the services of good legal advisors or HR experts as and when required. By delegating these tasks to your accountant, you can focus on more critical issues like business growth and expansion.
Having a professional accountant by your side might sound like an added expense, but it saves time, effort and money overall. It also saves you from the tax season headache since your business will be A-ready with all the documentation and numbers well in advance. Hiring a professional accountant for your business at the earliest might well be one of the best investments you ever make for your small business.
Contact DDL & Co. in Niagara Region for Your Accounting Needs
Hire a professional accountant to outsource your accounting and bookkeeping requirements so that you can give your business the attention it needs. At DDL & Co., our trained and experienced accountants can provide services to take care of all your business accounting needs, including tax filing and CRA regulations. To learn more about how DDL & Co. can provide you with the best accounting and bookkeeping expertise, contact us online or call us at 905-680-8669.